Ethereum (ETH) is facing renewed selling pressure as it struggles to reclaim key resistance levels, raising concerns about a potential retest of lower support zones. With momentum fading and technical signals aligning bearishly, market participants are watching closely to see if ETH could revisit the $2K support area in the coming weeks.
Daily Chart: Key Resistance Rejects ETH Recovery
Ethereum remains capped below its 200-day moving average at $2.7K, a critical resistance level that has consistently rejected upward attempts. This prolonged inability to break above the 200-day MA suggests a lack of strong bullish conviction. The price structure is now showing signs of distribution, hinting at an upcoming correction.
Should current weakness persist, a drop toward the $2.2K support appears increasingly probable. This zone may act as a key demand area where buyers could potentially regroup. However, if selling pressure intensifies, a deeper pullback toward the 100-day MA near $2K could become a realistic scenario—especially if broader market sentiment turns risk-off.
4-Hour Chart: Rising Wedge Breakdown Looms
In the 4-hour timeframe, ETH is trading within a rising wedge pattern, typically viewed as a bearish reversal signal. Additionally, bearish divergence on the RSI points to weakening momentum, further supporting the case for a potential breakdown.
A decisive move below the wedge’s lower boundary near $2.4K could accelerate losses, potentially dragging ETH down toward $2.2K or even the psychological $2K support. On the other hand, a breakout above the upper wedge line may trigger a short squeeze, though such a move currently appears less likely given prevailing market conditions.
On-Chain Insights: Whale Activity Suggests Distribution
On-chain data also paints a cautious picture. The Average Order Size of Executed Trades has risen significantly, indicating increased whale activity in the $2.5K to $2.8K range. Historically, this uptick in large order sizes often coincides with profit-taking or distribution phases—common near local market tops.
This behavior reinforces the idea that institutional players may be preparing for a downturn or positioning defensively. Without a strong shift in sentiment or volume-driven breakout above resistance, Ethereum appears vulnerable to continued consolidation or a deeper correction.
